Former Deutsche Bank co-CEO Anshu Jain is joining Cantor Fitzgerald as president after departing from Germany’s largest lender amid increasing legal and regulatory problems, according to a Bloomberg report.
Jain will be tasked with helping the company expand in areas such as fixed-income and equities trading and prime brokerage, as the firm looks to capitalise as strict regulations force global investment banks to pare businesses and pull back from some clients.
Jain previously helped build Deutsche Bank into Europe’s biggest securities firm over two decades before stepping down in June 2015 as profitability took a hit amid a trading slump, stiffer regulation and continual government probes.
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Jain joined Deutsche Bank in 1995 and rose to lead a corporate and investment banking division that produced most of the company’s revenue. In 2012, he became co-CEO succeeding Josef Ackermann, who was at the helm for a decade. A run of bad news followed as Jain and fellow co-CEO Juergen Fitschen worked to shore up the bank’s capital, cut costs and boost returns. The lender was probed for tax evasion in carbon markets, raided by the police and ordered to pay $2.5 billion for its role in rigging benchmark interest rates known as Libor.
Within weeks of the Libor settlement, Jain emerged from the annual shareholder meeting with the lowest backing for management by investors in over a decade. After stepping down from his role, an executive shakeup followed that saw the exit of other board members and investment-bank leaders.
Last month, Deutsche Bank agreed to a $7.2 billion settlement to end a US investigation into its sales of the mortgage securities that helped fuel the 2008 financial crisis.
Jain will assume his new post in the coming weeks and will work from the company’s London offices.